ETH Price Analysis: Low Volume Pullback Hints At A Downfall To $1600 

ETH slumped to 14-mth lows last week

While Bitcoin falls back under the $30K mark, Ether market price loses the $1800 mark and becomes closer to the $1700 support level. Moreover, the ETH price action shows a high likelihood of bearish fallout that may drown the market value under $1700. 

Key points: 

  • The ETH chart shows a downtrend under the influence of a resistance trendline.
  • The $1700 support fallout would slump ETH price to $1600 support
  • The intraday trading volume in the Ethereum is $9.93 Billion, indicating a 40% loss

ETH/USD Chart

Source- ETH/USD chart by Tradingview

The Ethereum(ETH) market price has been falling as the selling spree continues after the $2800 support level breakdown. The selling pressure increased exponentially in April and took a step back in May as buyers struggled to sustain a market value above $2000.

However, the ETH sellers managed to crack $2000 to test $1700 but failed to sustain as a sharp V-shaped reversal retested the broken $2000 level. The post-retest deterioration increased selling pressure which brought the market value back under $1800 and warned of the fallout of $1700.

The recent rejection from the resistance trendline showcases increased selling pressure and might break under $1700 to test the next support at $1575.

On the opposite end, a bullish reversal can lead ETH prices to another bullish attempt of trendline breakout close to $1900.

Technical indicator-

The DI lines delay bullish crossover as the ETH supply dump leads to a lateral shift. This projects a high likelihood of increased bearish spread. Moreover, the ADX indicator shows a fall in trend momentum as a top rounding reversal.

The 20-day(yellow) EMA trends below the 50-day(red) EMA display a bearish alignment and provide resistance to bullish growth. 

  • Resistance level- $1900, and $1925
  • Support level- $1700 and $1575

 

The post ETH Price Analysis: Low Volume Pullback Hints At A Downfall To $1600  appeared first on CoinGape.

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